Options & Corporate Finance Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Page 1

Question 1 1. How is the intrinsic value of a stock option calculated?

Question 2 2. What is the impact on the price of the option of the amount of time between now and the strike date of the options contract?

Question 3 3. Which of the following is the best definition for the term 'financial derivative?'

Question 4 4. What is a 'derivative,' when speaking of financial instruments?

Question 5 5. What is the maximum amount of money you can lose if you buy a call or a put?

Page 2

Question 6 6. Which of the following statements is true about stock options?

Question 7 7. Which of the following only indirectly influences option prices?

Question 8 8. What is true about a call option?

Question 9 9. Which of the following is a disadvantage to employees of employee stock options?

Question 10 10. If you see an option quoted at $2.25, how much will that option contract cost you (excluding transaction fees)?

Page 3

Question 11 11. In an employee stock option plan, what is the grant price?

Question 12 12. Which of these is not part of an options contract?

Question 13 13. Why do employers offer employee stock options?

Question 14 14. Other than the price of the associated stock, what factor determines the price of an option?

Question 15 15. What is the difference between a 'call' and 'put' option?

Options & Corporate Finance Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Finance 101: Principles of Finance  /  Business Courses
Support